The ERC-6551 is a new development in the world of Non-Fungible Tokens (NFTs) that aims to improve the traceability of ERC-721 tokens. It creates a smart contract wallet for each non-fungible token, making it more dynamic and interactive. The token-bound accounts provide enhanced security, simplified user experience, transaction efficiency, and innovative use cases within the DeFi ecosystem. They enable secure and efficient decentralized exchanges, introduce enhanced security measures in lending and borrowing platforms, and enable the novel possibility of an NFT possessing a wallet and its associated assets. The integration of ERC-6551 token-bound accounts in lending and borrowing platforms provides improved security measures, ensuring the protection of users' assets throughout the process.